Government Energy Plans Likely to Increase Bills by £300
Posted on: September 6th, 2011 by Justin Becks
Reports now show that the Prime Minister has warned that government plans to reduce energy bills through efficiency measures are likely to fail. This is extremely bad news as it could mean that household bills may increase by almost £300.
Apparently, members of the government have been criticizing claims by Chris Huhne, who is the energy secretary, that rising gas and oil prices will be offset by people using less power. Other members of the government have stated that his argument has been unconvincing.
On top of this, experts have already been warning that the government’s plans to increase nuclear power, wind turbines, and other forms of renewable energy will increase people’s energy bills by about 30 percent. Pretty much, this means that the average family’s annual energy bills will increase by about £1,069 by the end of the decade. This means more and more people will be unable to afford their energy bills sending them into fuel poverty.
Mr. Cameron himself said that he was extremely worried about the figures that have been brought to his attention lately. Rising energy bills are just going to put even more stress on already cash-strapped families.
All of this has come to light just after Mr. Cameron announced his plans to bring down energy prices. This was going to be done by giving regulator group Ofgem more power when dealing with energy companies. Despite giving this agency more power, he still had to sit back and watch a number of energy companies increase their prices again this year.
By the year 2020, the Department of Energy and Climate Change says that the average household energy bill will increase by about 30 percent. In his same report, the group went on to identify four policies that will increase energy bills. This did include the government’s demand for energy to come from more renewable sources. Although this is a great idea in theory, it will end up costing a lot of money.
Right now, energy is a major topic for people. Consumers want to use renewable energy, but they want it to be affordable. If it becomes too costly, then people have to put their financial needs first. In order to avoid this problem, renewable energy has to become cheaper to generate. Until cleaner energy can be produced for cheap, energy is going to continue to be a growing concern for people. The government will have to invest more money into renewable energy in the near future.
